by Dennis Mason
On Monday June 25th, 28 Spanish banks were downgraded by Moody’s; one of the reasons given by Moody’s for the downgrade of the Spanish banks, was that they are connected to Spain’s sovereign debt, which was downgraded earlier this month.
Meanwhile, Cyprus saw its sovereign debt cut by Fitch to BB+, in the face of seeking a bailout to meet a reported 1.8 billion Euros in four days, to cover the recapitalization of Cyprus Popular Bank.
And the vicious cycle continues.
With the over-the-table maneuvers to get Cyprus some quick cash from the European Support Mechanism, 5 out of the 17 nations of the Euro-zone are now above-board in an admitted state of fiscal collapse. So the question to ask here is: When to admit the collapse of the system as a whole, deal with that collapse, and carry on? In whose interest is it to hesitate on this most important and deadly problem? Is it in the interest of the nations in question, both those who are already aboard the good-ship bail-out, as well as those European nations expected to embark soon? In the interest of the peoples of those nations? I think not. Is it in the interest of the banks, as institutions, to wait until disintegration actually manifests at their door, before action is taken? No.
To whose benefit?
There is only one very old institution which benefits from, and actively seeks to induce, economic collapse: with the active disintegration of the Eurozone, and the crescendo towards active conflict with Russia via Syria, the British Empire is already waging a two front war. The empire has a clear and concise objective: defeat any threat to their existence. Remember: at every turn— since its inception— the British have kept the policies of the Eurozone at arm’s length. The policies of colonialism— as identified by that name by the President of Cyprus in the Greek paper “the Step,” the day before seeking the hand of that same colonial policy— the policy of empire is not for the seat of Governance, but is for the governed.
Tony Blair makes damned sure of it.
What’s the way out?
Glass-Stegall. Return the principle of sovereignty to the name of sovereign debt. The principle of Westphalia, as repeatedly attacked by Tony Blair, is one of the gems of achievement of modern western European civilization. The Federal Constitution of the United States is an enhancement and active self-development of that great principle of good. These, as FDR said in his fight against British colonialism, are modern methods. Glass-Stegall and the American Credit System are the most modern methods of political economy yet devised by man.
That evil principle of empire, which drives the actions of Tony Blair— and Blair’s latest American project Barack Obama— is an old, old principle. You could say it’s as old as the dinosaur: we all know how they ended up.
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